Event Hospitality & Entertainment : Preliminary Final Report

EVENT HOSPITALITY & ENTERTAINMENT LIMITED

ABN: 51 000 005 103

FINANCIAL REPORT

FOR THE YEAR ENDED

30 JUNE 2021

(INCLUDING ADDITIONAL APPENDIX 4E DISCLOSURES)

ASX CODE: EVT

RELEASED

23 AUGUST 2021

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CONTENTS

Results for announcement to the market (Appendix 4E)

Annexure to the Appendix 4E

Consolidated financial report

INTERNET

These results will be available on the internet at www.evt.comunder the Investor Centre menu.

ENQUIRIES

Media enquiries should be directed to:

Jane Hastings - CEO	Phone: [phone]
David Stone - Company Secretary
Street address	Postal address
478 George Street	GPO Box 1609
SYDNEY NSW 2000	SYDNEY NSW 2001

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APPENDIX 4E (Rule 4.3A)

PRELIMINARY FINAL REPORT

FOR THE YEAR ENDED 30 JUNE 2021

RESULTS FOR ANNOUNCEMENT TO THE MARKET

(All comparisons to the year ended 30 June 2020)

							Restated*
						2021	2020
						A$'000	A$'000
Revenue and other income				to	692,474	1,030,921
	Down	32.8%
Total revenues and other income		to	692,474	1,030,921
(Loss)/profit before individually significant items, net finance
				(35,744)	37,020
costs and income tax
Net finance costs						(41,194)	(32,513)
(Loss)/profit before individually significant items and income
				(76,938)	4,507
tax
Individually significant items					13,910	(72,949)
Loss before income tax
				(63,028)	(68,442)
Income tax benefit					14,992	11,455
Loss attributable to members of the parent entity	Up	15.7%		to	(48,036)	(56,987)
Dividends		Amount per security	Franked amount per security
Final dividend	- Current year		Nil			Nil
	- Previous corresponding period		Nil			Nil
Interim dividend	- Current year		Nil			Nil
	- Previous corresponding period		21.0 ¢				21.0 ¢
Total dividend (interim and final):	xxxxxxxxxxxxxxxxxx		xxxxxxxxxxxxxxxxxx
	- Current year		Nil			Nil
	- Previous corresponding period		21.0 ¢				21.0 ¢
Record date for determining entitlements to the dividend
Not applicable
Date of final dividend payment
Not applicable

For an explanation of the figures reported refer to the commentary on results in the Annexure.

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APPENDIX 4E (Rule 4.3A)

PRELIMINARY FINAL REPORT

FOR THE YEAR ENDED 30 JUNE 2021

Commentary on the full year results

See attached annexure and the Directors' Report.

Restatement of financial statements

The Group has applied various changes to accounting policies, which has impacted both the opening position of its financial statements and the performance and position of previous reporting periods. See attached consolidated financial report for more information.

Controlled Entities Acquired or Disposed of

See attached consolidated financial report.

Associates and Joint Venture Entities

See attached consolidated financial report.

Net Tangible Asset Backing
			Restated
		30 June 2021	30 June 2020
	Net tangible asset backing per ordinary security	$4.78	$5.11

Compliance statement

The attached consoldiated financial report for EVENT Hospitality & Entertainment Limited has been subject to audit by KPMG. A copy of the independent auditor's report to the members of EVENT Hospitality & Entertainment Limited is attached.

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D I R E C T O R S ' R E P O R T

The information presented below is the Operating and Financial Review, which forms part of the 2021 Directors Report

OPERATING AND FINANCIAL REVIEW

The result for the year was materially impacted by the continued and unprecedented global COVID-19 pandemic resulting in significant government mandated trading restrictions and closures. These restrictions were most severe in the first half of the year, and when restrictions eased in the second half, there were signs of a return to pre-COVID-19 demand. Group revenue excluding the benefit of government subsidies was $540.7 million, down $449.3 million or 45.4% on the prior year. Group revenue in the second half was up 30.9% on the first half and for divisions that were open, all exceeded revenue on the comparable half year period.

In Entertainment, with cinemas re-opening globally, towards the end of the year studios began to release blockbuster films and the immediate pent-up demand for the cinema experience was evident. Despite various interstate and international travel restrictions, Hotels experienced quarter-on-quarter improvement in trading, reaching 63.1% occupancy in the fourth quarter. At Thredbo, whilst the available audience was impacted by more than 50% due to government restrictions, the changes implemented to adapt to the constraints mitigated the impact. In addition, record demand for the summer experience contributed to Thredbo achieving a full year record revenue result.

To mitigate the impact of government trading restrictions on revenue, swift action was taken by management in the development of new COVID-safe and viable operating models. Active cost management as a result of business transformation initiatives reduced costs by $158 million, excluding government subsidies. The new business models are expected to deliver longer term benefits with improved margins post the pandemic. Since the commencement of the pandemic, active cost management strategies have delivered a total reduction in costs in the period from March 2020 to June 2021 of $264 million.

1. Normalised EBITDA is profit before depreciation, amortisation, the impact of AASB 16 Leases, interest, tax and individually significant items. Normalised profit is an unaudited non-International Financial Reporting Standards ("IFRS") measure.
2. Reduced revenue is before wage subsidies and support (presented separately).
3. Revenue related cost savings include film hire and cost of goods sold.
4. Subsidies and support represent incremental amounts recognised during the year ended 30 June 2021 when compared with the year ended 30 June 2020 and includes German government support recognised during the year and wage subsidies including JobKeeper in Australia, the Wage Subsidy in New Zealand, and Short-Time Pay in Germany. Approximately half of all wage subsidies received in the year represented a pass-through to employees that were not working during the period.
5. Active cost management represents all other cost savings.

Since March 2020, the Group has applied government wage subsidy programs including JobKeeper in Australia, the Wage Subsidy in New Zealand, and Short-Time Pay in Germany. The JobKeeper program concluded in March 2021. Overall, approximately half of all wage subsidies received to date represented a pass-through to employees that were not working during the period, and as such provided no net benefit to the Group. The balance of the wage subsidies received assisted the Group in retaining employees during periods of government-mandated periodic closures, lockdowns and travel restrictions, which have materially impacted all of the Group's businesses.

The Group's unallocated corporate costs were down 12.6% on the prior full year. This included the voluntary salary reductions from the CEO and Executive, and reduced Board fees. In addition, no bonus payments were made in the financial year. These unallocated cost savings were partially offset by an increase in insurance premiums of $2.0 million and overall, the Group's insurance costs escalated to $11.2 million, up 75.9%.

5 EVENT Hospitality & Entertainment Limited - 2021 Annual Report